Pakistan’s Maritime Waters Removed from Risk Assessor’s List of Dangerous Areas
In a significant development for the country’s maritime trade, Pakistan has been removed from the risk assessor’s list of areas considered hazardous by Lloyd’s Market Association (LMA). This move is expected to reduce war-risk insurance premiums and shipping costs.
The decision was made after two decades since Pakistan’s inclusion on the list. The US had declared its war on terror following the 9/11 attacks in 2001, prompting LMA to include Pakistani waters among its Listed Areas for additional risk assessment.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry welcomed the decision and stated that it would improve Pakistan’s competitiveness in exports. He also emphasized the potential benefits of removing Karachi Port, Port Qasim, and Gwadar from the list, making them more attractive to global shipping lines and investors.
The inclusion of these ports had resulted in additional war-risk insurance premiums and surcharges for Pakistani shipping and trade. The prime minister subsequently constituted a special committee headed by Chaudhry to pursue the matter. This committee held negotiations with Lloyd’s officials and presented Pakistan’s case based on technical evidence and factual data.
Sustained negotiations eventually led to Pakistan being removed from the list, according to Minister Chaudhry. He noted that even during Ramadan, lengthy meetings were held after iftar, resulting in sustained efforts leading to the decision.
The removal of these ports is expected to reduce the additional financial burden on Pakistan’s maritime trade and help its exports compete more effectively in international markets. The government has also vowed to continue improving maritime safety and efficiency, expanding port capacity, and attracting investment in the sector.
Pakistan’s inclusion on LMA’s risk assessor list was a significant development for the country’s maritime industry, as it had resulted in higher insurance premiums and reduced trade opportunities. However, this decision marks an important step towards making Pakistan a major regional logistics hub, transit point, and transshipment center.
Source: Dawn
Based on reporting from Dawn.
